Nuclear Reactors 220 - Hungary in Dispute with European Commission Over Russian Nuclear Fuel Import

Nuclear Reactors 220 - Hungary in Dispute with European Commission Over Russian Nuclear Fuel Import

         There is an interesting dispute going on in Eastern Europe of the supply of nuclear fuel to reactors in Hungary. The existing Hungarian nuclear power reactors were built by the Soviet Union and used Soviet fuel. When the Soviet Union fell, Russia continued to supply nuclear fuel. Now Hungary has signed with Russia for the construction of two new AP1000 third generation power reactors at the Paks nuclear power plant. The dispute I mentioned is over who is going to supply the nuclear fuel for the new reactors.

        The Euratom Supply Agency (ESA) has to approve all nuclear-fuel deals that European Union members sign with companies and countries outside of the European Union. One of the main concerns that the ESA has is that a E.U. member nation may become too dependent on single supplier of nuclear fuel. If the ESA identifies a possible violator, they refer to case to the European Commission, the governing body of the E.U.

         Hungary is relying on the new Russian reactors that it has ordered to replace the electricity lost when old Hungarian reactors are shut down within the next twenty to thirty years. Hungary has chosen to classify all the information pertaining to the new reactors and Russian contract for thirty years.

         Hungarian officials have reported that the ESA has some objections to the deal it just signed with Russia to only use Russia fuel in its nuclear power reactors. The ESA has just asked Hungary to make some changes to the nuclear fuel supply deal. The E.C. has issued a ruling but the Hungarian government has classified the documents. The E.C. has asked them to make the documents public. All Hungary will say is that they expects to finalize an arrangement with the E.C. that will satisfy E.U. requirements. They say that the delivery of fuel to the Paks plant will be secure and that Russia will be one of their fuel suppliers.

        In addition to the ESA concern over single sources for reactor fuel, the E.C. has launched a separate investigation into the question of competition. The Hungary-Russia contract currently states that only Rosatom in Russia will be supplying the fuel for the new reactors at the Paks power plant. It appears that the contract for fuel was awarded to Rosatom without a public tender process.

       The fight over nuclear fuel supplies is part of a broader conflict between the E.U. and Russia over delivery of fuels which include natural gas. The E.U. wants to reduce its dependence on Russia for natural gas in light of threats from Russia to restrict natural gas flows as part of diplomatic negotiations. The E.U. does not want Russia to be able to use the same pressure tactic with nuclear fuels. The E.C. has announced that it intends to require much more information on future energy deals between E.U. members and other companies and countries.

Paks Nuclear Power Plant: